Variable Overhead Expenditure or Spending Variance:

Variable Overhead Expenditure or Spending Variance: It is the difference between the standard variable overheads for the actual hours and the actual variable overheads incurred and can be calculated as:

Variable Overhead Expenditure Variance = (Actual Hours x Standard Variable Overhead Rate per hour)-Actual Variable Overhead

or,

= Actual Hours (Standard Variable Overhead Rate - Actual Variable Overhead Rate)

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Originally published at https://accountingclass.online on July 25, 2020.